Uniswap Demolishes Binance and Others in Terms of Trading Volume Growth

Many people hope to see decentralized exchanges dethrone centralized platforms. It will take a long time before that can even happen. So far, Uniswap is doing well for itself, especially in recent months. 

The Uniswap Train is Coming

Over the past few months, some interesting changes have taken place in crypto trading land. Whereas Binance is still the largest centralized exchange, it doesn’t dominate the landscape any longer. In fact, its trading volume has been surpassed multiple times by Uniswap. A remarkable turn of events, all things considered. 

Throughout 2020, this growth has become a lot more outspoken. The first peak was recorded in February of 2020. In March, Uniswap volume still trumped Binance, Huobi, OKEx, Coinbase Pro, Kraken, and Bitfinex. Ever since May came around, this discrepancy has only grown by leaps and bounds. 

More and more people are finding their way to this decentralized platform. At the same time, centralized exchanges now have a negative volume growth rather regularly. Three times in the first 9 months of the year, to be exact. Not the trend most people would have expected to see. Even so, this is a good development for the broader industry. 

Granted, the surge in popularity of DeFi is a key factor. Tokens are listed much faster on Uniswap and other DEXes compared to Binance, OKEx, and Kraken. Those who want early access to these assets need to explore Uniswap or other similar platforms. 

The one time Binance and others decided to list a DeFi token quickly, it was – of all assets – Uniswap’s own UNI token. This goes to show the momentum in this space is shifting quickly. Decentralized platforms are the way forward. CEXes, on the other hand, will slowly note decreasing volumes.

At the same time, one has to wonder how all of this will evolve. Statistics can look very different in a year from today. Uniswap and consorts have to find ways to stay relevant as well. That may prove more challenging than most people anticipate. 

 

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